This video will explain the chapter 13 bankruptcy process like and how it will be beneficial to those who are in debt.
The Chapter 13 law allows the debtor to set up a payment plan and not get told how to proceed. The debtor will outline how they will make the repayment to the trustee. They will then distribute the funds to creditors in the coming three or five years. Oftentimes, a debtor will work with a bankruptcy attorney to develop a viable plan.
Naturally, not any type of plan can work which is why it’s a good idea to partner with an attorney for bankruptcy. The plan needs to be constructed in “good confidence”. In other words, there needs to be a reasonable chance for the plan to achieve the objectives of paying down the debt , while keeping within the parameters of the law.
Although bankruptcy can be overwhelming and stress-inducing, you do not have to go through it on your own. The bankruptcy process doesn’t require you to pay off all your expenses at one time. Chapter 13 bankruptcy allows you the freedom to choose how to pay. Find more information in the video linked above.